PriceSmart Inc (PSMT)

Net profit margin

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	122,271	114,347	109,205	117,128	106,814	106,928	104,534	100,691	103,962	100,737	97,963	98,578	88,754	86,118	78,109	78,706	80,097	78,307	73,191	71,514
Revenue (ttm)	US$ in thousands	4,645,640	4,498,230	4,392,180	4,301,670	4,240,670	4,145,550	4,066,096	3,954,332	3,818,786	3,717,795	3,619,871	3,520,846	3,425,513	3,394,679	3,329,188	3,319,907	3,308,532	3,256,222	3,223,918	3,200,484
Net profit margin		2.63%	2.54%	2.49%	2.72%	2.52%	2.58%	2.57%	2.55%	2.72%	2.71%	2.71%	2.80%	2.59%	2.54%	2.35%	2.37%	2.42%	2.40%	2.27%	2.23%

February 29, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $122,271K ÷ $4,645,640K
= 2.63%

Net profit margin is a key financial ratio that indicates the percentage of each dollar of the company's revenue that translates into net income after all expenses are deducted. This ratio reflects PriceSmart Inc's ability to control costs and generate profit from its operations.

Analyzing PriceSmart Inc's net profit margin over the past few quarters, we observe some variation in the profitability of the company. The net profit margin has ranged from 2.23% to 2.80% over the last 20 quarters. In the most recent quarter ending February 29, 2024, the net profit margin was 2.63%, which is slightly higher than the previous quarter's margin of 2.54%.

On average, PriceSmart Inc has maintained a relatively stable net profit margin around 2.5% to 2.7% in recent quarters. This indicates that the company has been able to effectively manage its expenses and generate consistent profitability from its revenue streams. However, the fluctuations in the net profit margin over time suggest that the company may face challenges in maintaining profitability levels consistently.

Overall, PriceSmart Inc's net profit margin trend indicates that the company is operating with a reasonable level of efficiency in generating profits from its operations. Management should continue to focus on cost control measures and revenue optimization strategies to sustain or improve the company's profitability in the future.